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ASX Small Caps Lunch Wrap: Local bourse sleepwalks to lunch, PLS falls 5pc

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  • ASX edges down at the half-way point in a quiet session
  • Pilbara Minerals falls 5pc as share block sale is reported
  • Westpac sells auto finance unit for up to $1.6 billion

 

The ASX has edged down slightly by 0.04% this morning as traders navigate the ongoing tensions in the Middle East.

In a quiet trading session no ASX sector has moved more than 1% in either direction aside from real estate.

Overnight, it was similarly quiet with all major indexes moving up less than 0.1%.

Traders are exercising caution following Iran’s recent strike on Israel, anticipating a retaliatory response from Israel but uncertain about when it might occur.

When asked last night if he would support an Israeli retaliatory attack, President Biden replied, “The answer is no.”
Biden added that he was scheduled to speak with PM Benjamin Netanyahu and noted that the G-7 was preparing a statement to help prevent further escalation.

Energy stocks on the ASX pulled back today following yesterday’s rally, as oil prices steadied after a 5% surge.

In the large caps space this morning, lithium miner Pilbara Minerals (ASX:PLS) slumped 5% after a report from the AFR suggested that Morgan Stanley and Bank of America were trying to sell a ~$270m block of PLS shares.

The news pushed other lithium plays like MinRes (ASX:MIN) and IGO (ASX:IGO) lower by over 1%.

Westpac (ASX:WBC) also slipped 1% after announcing that it was selling its auto finance loans and lease receivables to Resimac Group (ASX:RMC) for between $1.4 billion and $1.6 billion, with the deal expected to close in the first half of 2025.

The move wraps up Westpac’s exit from the auto finance sector, following a partial sale in 2021, and is not anticipated to significantly affect its financial results.

Source: Market Index

 

NOT THE ASX

Data released on last night indicated that US companies added more jobs than anticipated last month, which contrasts with other signals pointing to a slowing labour market.

The upcoming non-farm payrolls report on Friday will provide another check for the overall health of the US economy, and will influence the Fed’s upcoming interest rate decision.

“Friday’s monthly jobs report will have the final word on the current jobs picture, and more than likely, on near-term market sentiment,” said Chris Larkin at E*Trade.

Oil prices steadied a little after the 5% jump yesterday, with Brent rising by 1.6% to US$74.60 a barrel.

The crude call options market indicates that traders are concerned about potential supply disruptions, as evidenced by the significant buying activity in options with a strike price of US$100 per barrel.

“As long as oil prices remain below $100 per barrel and corporate profits remain strong, that is supportive of higher stock prices,” said Mary Ann Bartels at Sanctuary Wealth.

In stock news, Tesla fell by 3.5% after its Q3 delivery numbers came in lower than expected, as discounts and financing deals didn’t attract enough buyers for its older electric vehicles.

With growing competition and a slowdown in EV demand, experts believe Tesla could be facing its first-ever drop in annual deliveries after years of rapid growth.

But investors are still hopeful about Tesla’s event in Los Angeles on October 10, where the company is set to reveal a new robotaxi and shift focus to AI tech.

READ: Nasdaq Wrap: Should investors buy Tesla before October 10, and is Microsoft gifting Nvidia’s holders?

Apple was up slightly after a JPMorgan survey found that more people want to buy iPhones compared to last year, but it’s not due to the new AI features.

The report showed that 68% of about 500 surveyed consumers are interested in getting a new iPhone, and they wanted a faster device with 5G connectivity not AI features.

In Asia today, the Japanese Nikkei index rose another 2% today after the nation’s new prime minister damped speculation about another interest-rate increase.

His statement weakening the Yen, which fell to a more than one-month low against the US dollar. As we know, Japan’s export-driven stock market relies on a weaker yen for support.

Bank of Japan official Asahi Noguchi is set to speak later today, potentially offering investors further clarity.

 

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for October 3 [intraday]:

Swipe or scroll to reveal full table. Click headings to sort:

Code Name Price % Change Volume Market Cap
XPN Xpon Technologies 0.011 57% 2,090,905 $2,537,090
AKN Auking Mining Ltd 0.006 50% 3,304,246 $1,410,281
ERL Empire Resources 0.003 50% 1,418,392 $2,967,826
VML Vital Metals Limited 0.003 50% 6,500,000 $11,790,134
VAR Variscan Mines Ltd 0.01 43% 2,300,628 $3,101,003
FIN FIN Resources Ltd 0.007 40% 244,795 $3,246,344
ERA Energy Resources 0.011 38% 9,341,177 $177,186,394
ILA Island Pharma 0.11 38% 3,061,577 $10,151,108
H2G Greenhy2 Limited 0.004 33% 4,743,788 $1,794,553
RBR RBR Group Ltd 0.002 33% 2,620,000 $2,451,607
VRC Volt Resources Ltd 0.004 33% 1,014,093 $12,476,034
HPC The Hydration Company 0.03 30% 1,779,283 $7,013,001
NYR Nyrada Inc 0.11 26% 1,946,169 $15,852,157
G88 Golden Mile Res Ltd 0.015 25% 1,108,093 $4,934,674
GTR Gti Energy Ltd 0.005 25% 1,717,378 $11,161,224
IBG Ironbark Zinc Ltd 0.0025 25% 944 $3,667,296
HIQ Hitiq Limited 0.017 21% 312,500 $4,925,830
PH2 Pure Hydrogen Corp 0.17 21% 1,236,195 $50,887,315
CC9 Chariot Corporation 0.145 21% 136,644 $10,755,343
PFT Pure Foods Tas Ltd 0.018 20% 21,325 $1,831,384
GES Genesis Resources 0.006 20% 300,000 $3,914,206
INV Investsmart Group 0.13 18% 5,000 $15,693,753
AJX Alexium Int Group 0.013 18% 12,151 $17,312,666
FRB Firebird Metals 0.135 17% 148,815 $16,371,561
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Island Pharmaceuticals (ASX:ILA) shot up early doors this morning after coming off a trading halt with some good news. The company has secured $3.5m in new funding from some notable names.

Subject to shareholder approval, the placement was supported by well-known biotech names including Dr Daniel Tillett, the head of cancer drug repurposer Race Oncology (ASX:RAC).

Hong Kong-based fund manager, Angus Walker also chipped in, as did Island co-founder and major investor, Dr Bill Garner, substantial shareholder Jason Carroll and recently appointed director Chris Ntoumenopolous.

The fresh funding will go towards the completion of the company’s ISLA-101 Phase 2a/b clinical trial in dengue fever, following dosing of Phase 2a subjects, announced earlier today. The capital will also help advance the due diligence program for antiviral therapeutic, Galidesivir.

For more coverage on this, read this morning’s Health Check column by Tim Boreham.

Meanwhile, in ressie land, Golden Mile Resources (ASX:G88) has announced further encouraging results from its Pearl Copper project in Arizona, USA. It’s talking sighting of “visible copper” with pXRF results highlighting polymetallic potential including: copper values up to 13.4%, lead values up to 1.29% and zinc values up to 7.22%.

And Chariot Corporation (ASX:CC9) is swinging high after revising its strategy for the Black Mountain hard rock lithium project in Wyoming, US. It notes it will shift from exploring for a large-scale resource to testing the viability of establishing a smaller-scale “pilot mine” at Black Mountain, with the goal of supplying spodumene concentrate to several lithium hydroxide refineries under construction in the southwestern United States.

 

ASX SMALL CAP LOSERS

Here are the most-worst performing ASX small cap stocks for October 3 [intraday]:

Swipe or scroll to reveal full table. Click headings to sort:

Code Company Price % Volume Market Cap
WML Woomera Mining Ltd 0.002 -33% 370,000 $6,165,223
ALR Altair Minerals 0.003 -25% 10,474,702 $17,186,310
PAB Patrys Limited 0.003 -25% 280,000 $8,229,789
IBX Imagion Biosys Ltd 0.036 -22% 285,633 $1,639,741
XGL Xamble Group Limited 0.022 -21% 505,040 $8,292,399
OVT Ovanti Limited 0.004 -20% 4,115,532 $7,781,742
IMI Infinity Mining 0.035 -19% 160,750 $5,836,998
LPD Lepidico Ltd 0.0025 -17% 1,077,420 $25,767,375
PRM Prominence Energy 0.005 -17% 16,667 $2,335,058
RIM Rimfire Pacific 0.036 -14% 4,534,459 $96,399,845
UCM Uscom Limited 0.012 -14% 3,101 $3,506,678
AAU Antilles Gold Ltd 0.0035 -13% 5,932,907 $7,422,971
ATH Alterity Therap Ltd 0.0035 -13% 102,280 $21,281,344
BNL Blue Star Helium Ltd 0.0035 -13% 207,496 $9,724,426
ETM Energy Transition 0.022 -12% 1,885,077 $35,217,717
GBZ GBM Rsources Ltd 0.008 -11% 811,000 $10,410,200
HLX Helix Resources 0.004 -11% 550,000 $14,688,872
BRN Brainchip Ltd 0.2275 -11% 12,828,978 $500,429,334
AKG Academies Aus Grp 0.125 -11% 1 $18,566,025
BEO Beonic Ltd 0.025 -11% 50,000 $17,646,450
PSL Paterson Resources 0.017 -11% 178,573 $8,664,720
SYR Syrah Resources 0.3 -10% 5,725,323 $346,688,742
MTH Mithril Silver Gold 0.49 -10% 1,961,262 $56,176,541
CXU Cauldron Energy Ltd 0.02 -9% 2,723,443 $27,214,674
EPM Eclipse Metals 0.005 -9% 25,000 $12,379,705
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IN CASE YOU MISSED IT

Chariot Corporation (ASX:CC9) has revised its strategy for its Black Mountain project in Wyoming, USA, and now envisions a shift from exploring for a large-scale resource to instead testing the viability of a pilot mine at the project that could rapidly produce spodumene concentrate to capitalize on the growing lithium supply deficit in the US market.

The contemplated modular plant design is expected to reduce upfront costs and offer flexibility to scale up rapidly, and the company says its long-term pilot mine strategy could provide short-term cash flow and potentially could optimize the development of larger-scale mining operations in the future.

The plan near-term is for 4,300m of Phase 2 RC drilling to define a high-priority, small-scale lithium resource to underpin the pilot mine and establish the foundation for future larger-scale resource definition.

Antipa Minerals (ASX:AZY) has appointed Mark Rodda as executive chair, effective today.

Rodda has been a director of Antipa since 2010, and brings nearly 30 years of experience as a lawyer and corporate consultant, with an extensive background in legal, commercial, and corporate management roles within the resources sector.

The company says his expertise is well aligned with its exploration and development plans in the Paterson Province, home to its flagship Minyari Dome gold-copper project.

The Paterson Province is attracting significant new investment and investor attention with its world-class gold and copper operations and development projects, including the Telfer mine and processing facility, Greatland Gold’s (LSE:GGP) Havieron development project, and Rio Tinto’s (ASX:RIO) Winu development project.

With Rodda’s particular skill set in legal governance, project development, and corporate strategy, Antipa says its well-positioned to maximise the value of its portfolio of strategic interests, while rapidly advancing the exploration and advancement of the Minyari Dome project.

Summit Minerals (ASX:SUM) has appointed Jamie Wright as a non-executive director, effective immediately.

Wright brings a wealth of experience in the minerals sector, including as the managing director of Global Lithium Resources (ASX:GL1) where he led the company through an IPO and a period of substantial growth.

“His extensive experience in the critical minerals sector from exploration to development will complement our strategic direction as we continue to explore and develop our asset portfolio. Jamie’s insights will be instrumental in guiding Summit Minerals as we progress our Equador niobium and tantalum project,” said managing director Gower He.

 

At Stockhead, we tell it like it is. While Chariot Corporation, Antipa Minerals, Summit Minerals, Golden Mile Resources and Island Pharmaceuticals are Stockhead advertisers, they did not sponsor this article.

 

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